Iceland Foods has relaunched its award-winning Iceland Food Club microloan scheme to help fight school holiday hunger this summer.
From 17 July, and throughout the six-week school summer holiday, Iceland shoppers will be able to apply for an interest free loan of between £25 and £75 in the form of a prepaid card to be spent in Iceland and Food Warehouse stores or online.
As many as 85% of UK parents report facing increased food bills during the school holidays, which add an extra £553m to UK grocery bills each week, according to new research commissioned by the supermarket ahead of the relaunch.
To help shoppers “make the most” of their Food Club loan, Iceland has partnered with nutrition Tanya Haffner, to compile a “budget friendly” shopping basket and affordable meal recipes.
The 31-items are enough to make five breakfasts, four lunches, five dinners as well as a seven healthy snacks for a family of four. The total cost is £74.63 if purchased from Iceland.
It includes Granny Smith apples, 30 eggs, chickpeas, chicken breasts, Cheese and pasta, in line with the NHS Eatwell Guide.
“It gives parents the confidence and means to buy fresh fruit, vegetables, and other essential ingredients available in Iceland supermarkets,” Haffner said.
“The recipes featured are designed to be nutritious, affordable, and easy to prepare, helping families keep children well-fed and energised throughout the holidays. It’s about making every penny count while supporting children’s health and wellbeing as they head back to school.”
In December Iceland had confirmed it planned to extend The Iceland Food Club throughout the 2025 school holidays.
The scheme was launched in 2022, in conjunction with not-for-profit lender Fair For You. It enables shoppers to apply for microloans of between £25 and £100. It won Social Impact Initiative of the year at this year’s Grocer Gold awards.
Iceland appears to have since dropped the available credit limit from £100 to a maximum of £75 for new applicants, however returning customers can still top up their card to a maximum of £100.
Loans are repaid in “manageable” £10 instalments each week. Iceland covers the cost of the interest, making them effectively interest free.
More families turning to payday loans to afford food
The supermarket first launched the scheme as an alternative to payday loans or buy now pay later schemes.
According to Iceland’s research, 26% of polled said they’d resorted to Buy Now, Pay Later services to cover increased holiday food costs. One in ten parents said they have relied on loans to manage their food bill, while 21% have sold personal items to cover the cost.
“The summer holidays should be a time for families to relax and make memories, not worry about how they’re going to afford their next food shop,” said Iceland Foods executive chairman Richard Walker.
“But the reality for millions is very different. When we hear that nearly a quarter of parents are skipping meals so their children can eat, we know we have to step in.
“Our Food Club will be available this summer, offering real, practical support that helps people stock up their fridges and freezers without falling into debt traps.”
The equivalent of more than £7m had been lent to customers through the scheme, as of December 2023. Applicants can apply via the Fair For You website.
“The summer break is always one of the most financially stressful times of the year for families and with the rising cost of living, we’re expecting this six-week break to be our busiest period to date,” said Fair For You CEO Simon Dukes.
“Our Food Club with Iceland offers a safe, flexible alternative to high-cost credit, allowing parents to put food on the table now and repay in a way that works for them, especially when many will be preparing for the next set of back-to-school costs.”
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